#GBPUSD @ 1.24507 has retreated after a short-lived pullback to near 1.2460 amid a recovery in the USD Index. (Pivot Orderbook analysis)

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• GBP/USD has retreated after a short-lived pullback to near 1.2460 amid a recovery in the USD Index.
• Stubborn UK inflation is supporting more interest rate hikes from the BoE.
• GBP/USD is auctioning in a Symmetrical Triangle chart pattern that indicates a contraction in volatility.

The pair currently trades last at 1.24507.

The previous day high was 1.25 while the previous day low was 1.2395. The daily 38.2% Fib levels comes at 1.246, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2435, expected to provide support.

The GBP/USD pair has sensed selling pressure around 1.2450 in the early European session. The strength in the Cable seems waned as the US Dollar Index (DXY) attempted a recovery after a correction below 104.00

Stubborn United Kingdom inflation is supporting more interest rate hikes from the Bank of England (BoE), which will keep the Pound Sterling in a bullish trajectory.

The USD Index is likely to remain volatile as the odds of a neutral interest rate policy by the Federal Reserve (Fed) have started receding, knowing the fact that the labor market is extremely solid and an absence of recession signals.

GBP/USD is auctioning in a Symmetrical Triangle chart pattern that indicates a contraction in volatility, which is followed by wider ticks and heavy volume after an explosion. The upward-sloping trendline of the aforementioned chart pattern is plotted from May 25 low at 1.2308 while the downward-sloping trendline is placed from May 10 high at 1.2680.

The 20-period Exponential Moving Average (EMA) at 1.2437 seems sticky to the asset, indicating a sideways performance.

Also, the Relative Strength Index (RSI) (14) has been confined into the 40.00-60.00 range, which signals that investors are awaiting a fresh trigger for a decisive move.

Should the asset break below May 31 low at 1.2348, US Dollar bulls would drag the asset toward May 25 low at 1.2308. Slippage below the latter would expose the asset to April 03 low at 1.2275.

On the flip side, a confident break above May 16 high at 1.2547 will drive the Cable towards May 10 low at 1.2603 followed by May 10 high at 1.2680.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2445 at the time of writing. Pair opened at 1.2437 and is trading with a change of 0.06 % .

The pair is trading above its 20 Daily moving average @ 1.2434, below its 50 Daily moving average @ 1.246 , above its 100 Daily moving average @ 1.2305 and above its 200 Daily moving average @ 1.2006

The previous day high was 1.25 while the previous day low was 1.2395. The daily 38.2% Fib levels comes at 1.246, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2435, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2388, 1.2339, 1.2283
• Pivot resistance is noted at 1.2493, 1.2549, 1.2598

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